In the Drum-Buffer-Rope Conceptualization Used in the Theory of Constraints,the

question 28

Multiple Choice

In the drum-buffer-rope conceptualization used in the theory of constraints,the "drum" that sets the pace for production refers to:

• A)work-in-process inventory before the bottleneck.
• B)the bottleneck of the process.
• C)total capacity of the process.
• D)first stage in the process.
• E)the master schedule.

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Definitions:

Income Summary

An account used in the closing process that summarizes the revenues and expenses of an accounting period, to determine the net income or loss.

Ratio Based

A method or analysis that involves the comparison of two or more numbers to evaluate the performance, condition, or relationship of different financial aspects of a business.

Net Income

The net income of a business following the subtraction of all costs and taxes from its total revenue.

Capital Balances

This represents the amount of funds that shareholders have invested in a company, often reflected in the equity section of a balance sheet.